First this:
"The Community Tournament is small-scale and not for commercial profit"
Which is just pathetic. Let your fans have some fun!
And then:
OK, this is a bit more tricky because some legal stuff, but still.
What does Nintendo gain from all this?
They gain some legal protection and something to point to if anyone tries to say Nintendo is responsible for people using their products in weird/shitty ways.
"Your games are encouraging people to xyz!", yells angry parent who doesn't want their kid to see or know about xyz.
"Actually, we told them not to do that and they're violating our use policies", replies Nintendo, "now please continue to comprise about 90% of our revenue when you buy fuckin 4 copies of Animal crossing that never goes on sale for your one household."
That's basically the gist.
HAving such bad-ass lawyers you would think they would a little more balls xD
